My 1999

"How much does Pacific Phase II Fund intend to invest now?"

"$150 billion and growing."

Xu Liang nodded slightly.

"In the second phase, we will raise US$30 billion, spread out US$24 billion, and use our own money to advance the remaining US$6 billion. Later, I will add more people to come over and then withdraw the money."

Jiang Xiaoyang nodded, and she understood that Xu Liang would also use his share of 6 billion US dollars in exchange for other benefits.

"How are you going to invest the $30 billion?"

Xu Liang has been considering the investment direction for a long time and has already made plans.

“Establishment of Pacific 5 and 6 funds.

Adding Fund 2, each fund is worth $10 billion.

Fund No. 2 invests in commodities such as oil, iron ore, copper ore, and coal.

Fund No. 5 invests in precious metal futures products such as gold and silver.

Fund No. 6 invests in convertible bonds and corporate bonds of global high-tech companies. "

Although Jiang Xiaoyang knew a little bit about hedge fund investment, he was far from proficient, so he didn't express any opinions.

“What about the investment period?”

"This time the period is longer and will not be lifted until December 2008. You notify various investment institutions and if they are unwilling, withdraw the funds."

The subprime mortgage crisis broke out, and the United States and the United States flooded the market with water to rescue the market. This will cause global oil and gold to surge. Xu Liang is waiting to eat this piece of fat.

At the same time, the global economic downturn caused by the subprime mortgage crisis has reduced the demand for commodities such as iron ore, copper ore, and coal, which in turn has caused prices to fall, so he has to ship in advance.

These layouts require a lot of his energy, so he doesn't want to organize another round of fundraising in the middle.

Directly and once and for all, extend the blockade period to three and a half years.

If you don't want to, just quit.

“Is three and a half years too long?”

Hedge funds rarely have such longevity.

"The company is getting bigger and bigger, and there are more and more things going on. I don't want to waste my energy on raising funds. By the way, has the financial report of Fund No. 2 been released?"

Jiang Xiaoyang nodded, stood up and took a stack of documents from the safe on his desk.

"Give."

Xu Liang took it.

Pacific No. 2 Fund started investing in June 2003 and ended in June 2005.

In two years, with US$15 billion, five times leverage, and a ratio of 3:2:2:1.5:1.5, it invested in long futures in five categories: crude oil, iron ore, copper ore, gold, and silver.

In two years, the price of oil has increased from US$32 per barrel to the current US$56 per barrel, an increase of 75%.

The price of iron ore has increased from US$30 per ton to US$69 now, an increase of 130%.

Other copper ore, gold and silver prices are similar to those of oil and iron ore.

With the rapid development of the global economy, the prices of international energy and commodities are also rising.

Taken together, the five major categories of commodities invested by Pacific No. 2 Fund have all achieved an increase of about 80% in two years.

Five times is 400%.

Pacific No. 2 Fund had a floating profit of US$60 billion.

This US$60 billion is deducted from the 35% capital gains tax, investment bank fees, loan interest rates, etc.

Pacific No. 2 Fund can get about 60% of gross profits.

Then half of the profits will be distributed to major GPs and investors.

The actual money that fell into Hanhua's hands was approximately US$18 billion.

"In the end, only 18 billion was obtained out of 60 billion. The sharing of meat is really painful." Xu Liang said.

But the meat still needs to be divided.

If he hadn't made such a calculation, let alone 60 billion, he would have been labeled as manipulating the market and disrupting the financial order as soon as he got off the plane in the United States. Like that big brother in the currency circle, he would have paid several billion first. dollars in fines, and then drained away bit by bit.

Clean up your mood.

Return the information to Jiang Xiaoyang.

“Are all investments in subprime debt over?”

"It's over. I'm working on the financial statements. I'll hand them over to you along with Hanhua's half-year financial report."

Jiang Xiaoyang said.

Xu Liang nodded and asked, "Has there been any response from Changyu Wine?"

"Not yet, but the Zhao family has already taken action, and Changyu Wine's share reform plan has been stopped."

"Haha, the Zhao family is pretty good. They really do things after they get the money."

Jiang Xiaoyang smiled and said, "Should we cooperate?"

"Of course we must cooperate. You ask Lao Wang to issue a merger and acquisition document in the name of Huaxia Liquor Industry, and set the acquisition price higher."

"Um."

Jiang Xiaoyang nodded and handed over another document.

"This is the contract to acquire Fuhua Real Estate, take a look."

Fuhua Real Estate was originally affiliated to Xuanwu Real Estate Fund, a subsidiary of Hanhua.

The latter has raised US$5.5 billion several times to invest in China's real estate industry.

With the support of this abundant capital, Fuhua Real Estate has become China's top real estate giant through continuous mergers, acquisitions and investments in just a few years.

It is now a real estate giant listed in Hong Kong with assets of nearly 120 billion Hong Kong dollars, debts of 46 billion Hong Kong dollars, and annual revenue of 18 billion Chinese dollars.

"The market value is not that long."

Xu Liangdao.

At the end of last year, with the acquisition of Fuhua Real Estate by Sunchi, the market value exceeded HK$70 billion.

Later, in order to enjoy the benefits of the appreciation of the Huaxia currency, Hongyan Fund took out another 2 billion US dollars to inject into Fuhua Real Estate, and continued to acquire plots of land thrown out by major real estate companies that were in trouble due to the 831 deadline.

Let Hongyan's land reserves exceed 30 million square meters.

At the same time, Fuhua also increased the number of projects started by more than 20.

This series of benefits made Fuhua Real Estate's market value briefly reach 100 billion.

But now the market value is only about 90 billion Hong Kong dollars.

"It was dragged down by the domestic market. From the end of last year to now, the real estate market has been continuously suppressed. Now nationwide, the real estate start-up rate has dropped by 30%.

The transaction volume has dropped by 20%.

The depressed market has affected the stock price.

Moreover, if it weren't for you, the runner-up rich man, standing behind Fuhua, the market value would be even lower." Jiang Xiaoyang said.

Xu Liang nodded and continued to read the following information.

After the listing and Hanhua's capital injection.

The original equity held by the "Xuanwu Real Estate Fund" has dropped from nearly 100% at the beginning to 63%.

According to the current market value of Fuhua Real Estate and the exchange rate of US dollars to Hong Kong dollars, this part of the equity is worth 7.4 billion US dollars.

Compared with the investment of 5.5 billion US dollars.

The floating increase in two years is 34.5%.

The average annual increase is only 17.25%.

Although this floating increase is not much worse than that of Buffett in the world.

But compared with the super high returns of Hanhua hedge funds and equity funds, it seems not good enough.

Xu Liang silently calculated.

To turn Fuhua Real Estate into Hanhua’s private industry, it is necessary to take out 7.02 billion US dollars from Hanhua’s own funds.

The reason why it is 70.2 instead of 74 is mainly because Hanhua’s investment needs dividends.

A return of 1.9 billion US dollars in two years.

When the return rate is less than 20%, Hanhua can only get 20% of the total floating profit.

That is 380 million US dollars.

After deducting this part, it is the money that Hanhua actually needs to spend.

After spending this amount, Hanhua’s Fuhua equity will also increase from the previous 17.15% to 80.15%.

It has the basis for privatizing Fuhua Real Estate.

But after finally going public, he had no intention of privatizing.

"Let's settle the matter of Fuhua Real Estate as soon as possible, and then sell the Fuhua shares held by Hanhua little by little.

In two years, our shares in Fuhua Real Estate will be reduced to 55%."

Jiang Xiaoyang frowned slightly, "Will it be too much? Moreover, if our large-scale sale of shares is widely reported by interested parties, Fuhua's market value will be seriously affected."

"Have you forgotten the subprime mortgages in the United States? Now they are all crazy, and this bomb will explode in two years at most.

If we don't sell the shares now, the loss will only be greater."

Jiang Xiaoyang's expression changed slightly. As the president of Hanhua, she certainly understands the changes in the current US subprime debt market.

Beggars and unemployed vagrants have several properties, which is really crazy.

"By the way, our cooperation with the Montes family, Goldman Sachs, and Morgan Stanley has ended.

$50 billion of real estate 3B sub-bonds.

$62 billion of B and 2B sub-bonds.

All of them have been sold through their channels.

After deducting the 20% share promised to them, 35% of capital gains tax, leverage interest, personnel and other expenses, and $10 billion of capital.

We have made a floating profit of $44.6 billion.

After deducting 50% of the investor share, Hanhua has a net profit of $22.3 billion." Jiang Xiaoyang's eyes were bright, and his tone was full of excitement.

"Including the previous $18 billion of floating profit of Pacific II Fund, we have made $40.3 billion this year."

Xu Liang smiled.

After Jiang Xiaoyang nodded vigorously, he looked at the man in front of him with admiration and said emotionally.

"My dear, you are the best financier in the world!"

With a loud laugh, Xu Liang grabbed the beauty's hand.

Wearing a milky white long-sleeved T-shirt and a black one-step skirt, the heroic beauty sat in his arms.

He lifted her smooth and shiny chin with his left hand, and they looked into each other's eyes.

"No matter how much money you make, it's not as good as a compliment from my wife."

Slapping his hand away, Jiang Xiaoyang smiled coquettishly.

"You just know how to coax me.

However, there is something you need to deal with.

The Pacific No. 3 Fund will not expire until the end of next year.

So this time, our profit from subprime bonds, plus $10 billion in capital, will all remain in the account. How are you going to invest this $54.6 billion capital?"

Holding the beauty's slender waist, Xu Liang thought for a while.

"How many shadow funds do we control now?"

"14, 6 in the United States, 4 in Europe, and 4 in Asia."

"It's still too few, and we will increase it to 20 this year."

Jiang Xiaoyang nodded.

"In the future, we will short US subprime bonds through shadow funds.

But this year and next year, we will not short, but continue to go long."

"Go long?"

"Yes. The total value of CDs contracts in the US market has exceeded 500 billion US dollars. The market is mature." Xu Liang affirmed.

In a booming market, going long can also make money.

And the booming development of the US CDS market is inseparable from his promotion.

If he had not teamed up with the Montes family, Goldman Sachs and Merrill Lynch to package and push subprime debts into the market, the US CDS market would not have developed so fast.

"What are you going to do?" Jiang Xiaoyang asked.

"Sell with the left hand and sell with the right hand to make a quick buck."

Xu Liang briefly told his wife about his money-making ideas.

The source of the subprime crisis is the bank.

In order to make huge profits, 20 or even 30 times leverage is used.

Assuming that a bank A has 3 billion in assets, 30 times leverage is 90 billion.

In other words, this bank A uses 3 billion assets as collateral to borrow 90 billion funds for investment.

If the investment makes a profit of 5%, then A will make a profit of 4.5 billion.

Compared with A's own assets, this is a 150% profit.

Conversely, if the investment loses 5%, then Bank A will lose all its assets and still owe 1.5 billion.

In short, if you win the club model, you will get the Kensington Street household registration book.

Of course, the Americans are not unaware that this is too risky.

The authorities even patched up financial institutions, limiting their leverage ratios, especially banks.

However.

Even the most perfect laws have loopholes.

The smart people on Wall Street quickly found a solution.

Take leveraged investments for "insurance".

This type of insurance is called CDS.

For example, in order to avoid leverage risk, Bank A found Institution B.

Institution B may be another bank, or an insurance company, and so on.

A said to B, how about you insure my loan against default? I will pay you 50 million insurance premiums every year for 10 consecutive years, a total of 500 million.

If my investment does not default, then you will get the insurance premium in vain.

If there is a default, you have to compensate me.

A thought, if there is no default, I can make 4.5 billion, and if I take out 500 million for insurance, I can still make a net profit of 4 billion.

If there is a default, there is insurance to compensate anyway.

So for A, this is a business that can only make money and not lose money.

B is a smart person. He did not immediately accept A's invitation, but went back to do a statistical analysis.

He found that less than 1% of real estate defaults occurred.

If you do business with 100 companies, you can get a total of 50 billion in insurance money.